Which of the following is NOT an issue to be considered when designing a gain-sharing plan?
A) deciding on the split among employees
B) deciding on the share price
C) deciding on the frequency for payout
D) developing procedures for communicating results

Question

Quizplus · Accepted Answer

The share price is not an issue to be considered when designing a gain-sharing plan. Gain-sharing plans typically calculate payouts based on a percentage of cost savings, productivity improvements, or revenue increases. The share price is irrelevant to this calculation. The other options (deciding on the split among employees, deciding on the frequency for payout, and developing procedures for communicating results) are all important factors to consider when designing a gain-sharing plan.

Which of the Following Is NOT an Issue to Be